Weekly Wrap

Fitzroys Weekly Wrap - 29th October 2021

Posted on 29th October 2021

264-270 Craigieburn Road, Craigieburn
An investor/developer bought the 7-Eleven and Red Rooster-anchored retail centre and an adjoining development site, spanning more than 1.25ha combined, for $20 million.
The retail centre has 868sqm of building area across 7 tenancies on a 6,215sqm site, with 7-Eleven on a 15-year lease and Red Rooster on a 10-year lease, and a total return of $777,429pa.

253-255 Governor Road, Braeside
The vacant 1,103sqm corner showroom on a 2,103sqm site sold for $3.585 million. It was home to used car seller Car Direct.

567 High Street, Prahran
A local private investor bought the dual-tenanted 223sqm corner building on a 264sqm site for $2,419,500 on a circa 4% yield. Pizza Hut has a 3 3 3-year lease over 184sqm, returning $77,864pa net, and a hairdresser leases the balance on a 3 3-year term bringing $25,750pa net.

108 Middleborough Road, Blackburn South
A 140sqm shop, on a 230sqm site close to Burwood Brickworks Shopping Centre, sold for $1.12 million at a 3.7% yield. It returns $41,440pa.

52 Toorak Road, South Yarra
A beauty operator signed a 3 5-year lease at $500/sqm net.

17-23 Station Street, Malvern
An owner-occupier bought the vacant 1,233sqm building, on a 979sqm site, for $10.15 million. It has 31 parking spaces and is opposite Malvern train station.

458 Swanston Street, Melbourne
An owner occupier based in North Melbourne bought the 133sqm level 1 space for $1.03 million. The 146sqm property at the rear of the same level recently sold for $980,000 to an architecture firm, also to occupy.

527 Spencer Street, West Melbourne
Black Venture Capital has leased the 240sqm space for 5 years at $275/sqm.

2 Joyce Street, Springvale
The 500sqm office and warehouse fitted with a commercial kitchen, located opposite Bunnings, sold with vacant possession for $1.35 million.

Unit 2/3 Industrial Avenue, Hoppers Crossing
An owner occupier bought the 298sqm warehouse unit for $610,000.

605 Canterbury Road, Surrey Hills
The Victorian government’s level crossing removal project leased the 2,666sqm former auto repair workshop on a 2,422sqm site at $317,775pa.

31 Colbert Road, Campbellfield
Australian Bus & Truck leased the newly completed 1,587sqm office and warehouse on a 2,383sqm site at $155,000pa.

5-7 Inverleith Street, Hawthorn
Zoned Commercial 1, the 645sqm site with a 550sqm single-level warehouse sold for $4.4 million.

1 Saffin Court, Bannockburn
The childcare centre property sold for $7.01 million at a 5.9% yield. Happy Feet early learning centre has a 15-year lease with options returning $384,677pa.

Rare Chance to Acquire Ideally-Placed Hawthorn Office Building
Investors have the rare chance to acquire a premium, high-profile Hawthorn office building that is ideally-placed to benefit from current working trends, and as the suburb emerges as an inner-Melbourne commercial and lifestyle hub.

Fitzroys’ David Bourke, Chris James and Shawn Luo are marketing 313-317 Burwood Road via Expressions of Interest closing Wednesday, 17 November at 3pm, on behalf of private owners.

The property comprises a 1,855sqm 4-level building on a substantial 1,185sqm landholding with dual frontages to Burwood Road and Lynch Street, and a high ratio of on-site parking with 68 spaces over 2 levels.

It is home to BIG4 Holiday Parks, the Australian headquarters of fuel systems engineers Leighton O’Brien, Fuse Recruitment, and HID Accountants, with a strong 4.1-year WALE. Fully-leased income is $718,266 per annum.

Zoned Commercial 1, the property also offers future value-add and development opportunities.

The building is within Hawthorn’s fast-growing office market, surrounded by national and local corporations including Orora Group, Xero, AVJennings, FIMG and United Petroleum, and is just moments from the intersection of the vibrant Glenferrie Road retail and lifestyle strip and Swinburne University, as well as Glenferrie Station, multiple tram routes and major roads.

Bourke said the asset is ideally positioned to benefit from the current Melbourne office market environment.

“Hawthorn has emerged as a ‘one-to-watch’ among Melbourne’s commercial markets, situated in an inner-suburban sweet spot that is currently attracting tenants from central locations and further out in the suburbs,” Bourke said.

“Businesses and employees are favouring highly-accessible locations close to excellent hospitality and lifestyle amenity that offer an excellent work and lifestyle balance, allowing workers to easily access the workplace and collaborate with colleagues in-person during while flexible working arrangements are in vogue.”

Fitzroys recently negotiated the leases within the building to Leighton O’Brien and Fuse Recruitment, who had both sought to optimise their office locations to be close to Glenferrie Road, public transport connections, and also take advantage of the on-site parking.

“The sub-500sqm market has been particularly active during the COVID period, as businesses with smaller space requirements have proven to be more agile and more willing to make commitments to leases,” James said.

“More businesses will be moving into this segment of the market amid ongoing reassessment of space requirements. Tenants have demonstrably sought out this particular building in the current environment, delivering reliable long-term income streams and supporting the strong WALE profile, and providing confidence for the buyer of ongoing demand.”

Victoria Hill Site Flipped
The former Le Pine funeral home site on Camberwell’s Victoria Hill has been flipped to developer Time & Place and Vin Sammartino for $25 million, with a permit for a 7-storey mixed-use building.

Plans for the 2,090sqm site at 979 Burke Road, on the corner of Victoria Road include ground floor retail, a mezzanine office level, and 27 apartments over 5 levels, over a combined 6,000sqm.

The vendor was local developer Angle, which settled on its $9.3 million purchase of the site in January.

Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2021 Fitzroys.